U.S. equities rose on April 22, as global market participants responded to the robust earnings reports of major companies.
Individuals involved in stock trading might benefit from knowing about this appreciation, as well as the reaction that investors had to the financial results of firms. Market participants who want to know more about the financial markets might benefit from knowing that investors usually react favorably to positive news like robust earnings reports.
Major stock indices gain
The S&P 500 Index was trading at 1,883.17 at 2:18 p.m. in New York, according to Bloomberg. At this point in the day, the benchmark group of stocks had risen 0.6 percent. The Dow Jones Industrial Average also made gains, increasing 0.6 percent to reach 16,543.72.
Amid these increases, the S&P has surged 3.7 percent over the last six days, the media outlet reported. As a result, the benchmark group of stocks is only 0.4 percent below the record high it attained on April 2. In addition, the Dow is within sight of its all-time high, which it reached on Dec. 31 of last year. Several market experts have asserted that investors went too far in the last several weeks in terms of selling off equities.
“Sentiment had gotten too negative, and some decent earnings reports have started helping the market,” Michael James, who works for Wedbush Securities Inc. as a managing director of equity trading, told the news source during a telephone interview. “That, combined with the positive deal talk and chatter in health care, gives a better tone to the market overall and certainly some support.”
Phil Orlando, chief equity strategist at Federated Investors, provided similar input on the current situation, according to The Associated Press.
“We were definitely oversold, there’s no question about that,” he told the news source. “Earnings, by and large, haven’t been worse than we thought and the economic news has actually been a little better.”
Companies report strong earnings
One major company that managed to please investors with its figures was Comcast Corp., according to Bloomberg. The firm reported a profit of 68 cents per share for the first fiscal quarter, and its shares rose 2.9 percent to reach $51.31 each. Another company that saw its securities increase was Harley-Davidson. This motorcycle maker indicated that during the first three months of the year, it generated $1.21 per share in earnings.